Wyloo Metals – a private company owned by Fortescue Metals Group Limited (ASX: FMG) founder and chair Andrew ‘Twiggy’ Forrest – has raised the stakes in its battle to takeover S&P/ASX 300 Index (ASX: XKO) mining share Mincor Resources NL (ASX: MCR).
It’s declared its intent to delist the takeover target if its voting power comes in at less than the 90% needed to kick off a compulsory acquisition.
Wyloo put forward a $1.40 per share bid in March, valuing the ASX 300 miner at $760 million. The Mincor board continues to recommend shareholders vote in favour of the acquisition.
Interestingly, Mincor stock is currently trading higher than the private entity’s bid. Its share price is $1.4025 right now, marking a 0.18% gain on its previous close.
Let’s take a closer look at the latest on the takeover currently underway by the Fortescue boss’ private mining company.
Fortescue boss’ Wyloo hopes to delist ASX 300 share
Wyloo appears to have changed tack in its takeover battle for ASX 300 nickel share Mincor. The suitor has so far acquired a 61.6% interest in the company.
It announced it’s changed its mind on the takeover target’s continued listing on the Aussie bourse today.
If Wyloo’s interest in Mincor doesn’t reach 90% by the end of the offer period – currently set to close on 22 May – it will seek to remove the ASX 300 stock from the market. That is, if the suitor believes it can satisfy all requirements to do so.
If it were to delist, anyone left holding stock in the company would no longer be able to sell their stake on the market. That has serious liquidity implications.
Wyloo declared its $1.40 per share offer for Mincor ‘best and final’ in the absence of a competing proposal after the ASX 300 miner withdrew its guidance.
Mincor scrapped its earnings forecast and announced it’s been delivering off-specification product to BHP Group Ltd (ASX: BHP) amid the ramp-up of its Northern and Southern operations in late March.
Mincor share price snapshot
The Mincor share price has had a rough trot as of late.
The stock has plunged 5% so far this year. It’s also currently 35% lower than it was this time last year.
For comparison, the ASX 300 has gained 5% year to date and 2% over the last 12 months.
